Financial Literacy
What is Visa?
• Global payments technology company and world’s largest payments network
• Allows a transaction to be authorized halfway around the world in a fraction of a second
• Processes over 100 billion transactions a year
• Accepted by millions of merchants and ATMs worldwide
• Debit and prepaid cards more popular than credit
Visa IS:
Visa is NOT:
• Not involved in setting or collecting cardholder rates or fees, making loans, sending solicitations
• Banks issue cards – Visa does not
Financial Literacy
Visa’s Commitment
Not just right for business but the right thing to do
• Visa believes that the financial services industry has the expertise, and the
responsibility, to empower our nation’s citizens to understand personal money
management and master their financial well-being and future.
• Visa has stood on this belief since 1995, when we began financial literacy
education outreach. Visa continues to lead the way with educators, our
nation’s leaders, school boards, state leaders, parents and financial
institutions to reach our nation with this critical knowledge.
• Visa has invested $10 million, and will continue to invest, to develop and
deliver engaging, relevant curriculum to support our nation’s educators and
leaders in their efforts to reach students and consumers who need it the most.
Financial Literacy
Today’s Take-Aways
• Basic knowledge of factors in overall
financial picture
• Money mindfulness – awareness
• Confidence that you can be an excellent
money manager
Financial Literacy
Overview
• Why Should You Care About Money
• Money & You
• Get Organized!
• Budget Basics
• Credit & Debt
• Save, Invest, and Plan for Your Future
• Resources
Financial Literacy
Why Should You Care About Money
• Money makes the world go round
• Costs of living: food, housing, utilities,
transportation, entertainment, etc.)
• Responsibility lies with individual (e.g.,
healthcare, retirement, credit history, etc.)
• Education – preparing for career
• Childcare – eldercare
• Life goals & dreams
Financial Literacy
Money & You
• What does money represent to you (e.g.,
security, happiness, success, confidence, power,
etc.)?
• How do you feel when you think or talk about
your financial situation?
• Does money help you sleep or keep you awake
at night?
• Are you where you want to be financially?
• Are you aware of how you save and spend?
• Can you envision yourself as financially
successful and savvy?
Financial Literacy
Get Organized – Your Financial Picture
• Goal: Get your financial life in order!
• Identify where all your savings,
investments, and assets are located
• Organize your financial documents - file
• Throw out old paperwork
• Create a financial inventory sheet
• Protect important documents (FTC-
Identity Theft)
Financial Literacy
Budget Basics
• How much is in your bank account?
• Know monthly income and expenses
• Create budget/spending plan
• Track your spending – save receipts
• Compare “flexible” vs. “fixed” expenses
• Include money for savings, investments,
and emergency fund
• Tip: online banking & automatic payments
Financial Literacy
Credit History & Debt
• Credit history begins when you borrow (credit card/student
loan)
• 3 credit reporting agencies (Equifax, Experian, TransUnion)
track and sell your financial information to lenders (credit
report)
• Combined information calculated into your FICO score
(300-850) (financial GPA)
• Affects all aspects of your financial life (e.g., apartment,
car, job, electricity & phone, lower finance rates, etc.)
• www.annualcreditreport.com or call (877) 322-8228 for
FREE credit reports
• Correct and report any errors
Financial Literacy
What Determines Your FICO Score
• Your payment history (35%)
• Current total debt (30%)
• Length of your credit history (15%)
• Requests for new credit or debt (10%)
• Types of credit you use (10%) – credit
cards, installment loans, mortgage, car,
retail, etc.
Financial Literacy
Save, Invest, and Plan for Your Future
• Read your Social Security Statement
• Know your retirement needs (70-80%)
• Contribute to you retirement plan and other other
eligible tax-deferred savings (e.g., Thrift Savings
Plan, 401k, SEP, IRAs)
• Learn about employer’s pension plan, benefits
• Other: health, home, and car insurance; estate
planning/will/trust/; power of attorney
(legal/financial/medical)
• Seek professional financial counsel/advice
• !
Financial Literacy
Challenge: Write Goals – SMART
• Short- and long-term goals
• Specific: 5 “w”s
• Measurable: How much, many, when?
• Attainable: challenge but doable
• Realistic: do you believe it can happen?
• Timely: set dates for your goals
• Visual reminders: vision board, written
list in front of you, on your computer, etc.
Financial Literacy
Visa’s Award-Winning Financial Education Programs
• Visa’s free financial literacy program for…– Educators
– Students (K-12)
– Parents
– Consumers
Practical Money Skills for Life
What’s My Score
www.practicalmoneyskills.com
www.whatsmyscore.org
• Visa’s free resource for young adults and college students– Credit scores
– Budgeting and saving resources
– Credit information & help
– Money guides
Financial Literacy
Get Practical Money Skills
Contact
Variny Yim PaladinoFinancial Literacy Trainer, Visa Inc.Email: [email protected]: 510-243-1622
www.whatsmyscore.org www.practicalmoneyskills.com
To learn more about our financial literacy programs…